Financialadvanced
Calculate net present value with NPV
=NPV(B1,B3:B7)+B2
Function reference
NPV in Excel & Google Sheets
NPV is used in 1 formula pattern in this library. Browse worked examples below, or use the generator to build a custom variation for your specific data.
1 advancedBuild a custom NPV formula →
When to use NPV
- Evaluate whether a project or investment generates more value than its cost when future cash flows are adjusted for the time value of money.
Worked examples (1)
Common errors with NPV
Initial investment included inside NPV
NPV discounts the first cash flow to period 1. If you include the upfront investment inside the range, it will be discounted incorrectly. Add it outside the function as a separate term.
Rate as a percentage instead of decimal
Enter the rate as a decimal (0.10) or a cell reference to a percentage-formatted cell. Typing 10 instead of 10% or 0.10 will give a dramatically wrong result.
Frequently asked questions
What does a positive NPV mean?
A positive NPV means the investment creates value — the discounted future cash flows exceed the initial cost. A negative NPV means the investment destroys value at the given discount rate.
Need a custom variation?
Describe your specific NPV problem and get a formula written for your exact data.
Open generator with NPV